Reform defence budgeting

Both allocations as well as expenditure flows need attention

Recent reports that Hindustan Aeronautics Ltd (HAL) was forced to take a bank loan of Rs 781 crore to pay its employees’ December salaries reflect the government’s strange approach to defence budgeting and spending. As this newspaper reported, the government currently owes HAL Rs 15,700 crore for products and services already delivered, of which Rs 7,000 crore is outstanding from the preceding year. With more bills likely to arise over the coming three months and no money to pay them, outstanding dues will swell to Rs 20,000 crore by the end of the financial year. HAL has asked the defence